They're in malls, on street corners, at parks and outside
office buildings--entrepreneurs who've made their dreams of
retailing a reality by opening cart or kiosk businesses. They sell
everything from hot dogs to sunglasses, from men's ties to
T-shirts. And they do it with overhead costs that are far less than
those of full-fledged stores.

For many entrepreneurs who dream of breaking into retail,
opening a shop is cost-prohibitive--but a cart or kiosk is a
profitable possibility. Just ask Wally Rizza. In November 1995,
Rizza, then 21, spent $25,000 to launch Shades 2000 Inc., a
sunglasses cart at the Irvine Spectrum Entertainment Center in
Irvine, California. Within a year, he raked in $184,000 in sales.
Today, Rizza has three sunglasses carts, a watch cart and a jewelry
cart, and he expects to gross about $500,000 this year. "A
cart business can be very profitable and is economically within
reach for many people," says Rizza, now 24.

"If you have the right product and a good location,
it's not uncommon to make $2,500 to $5,000 per week [with a
cart]," says Bruce Stockberger, owner of Stockberger Marketing
Associates, a North Palm Beach, Florida, small-business marketing
firm specializing in cart, kiosk and Internet marketing. "You
can buy a cart for as little as $11,000 and make $1,200 to $1,500
per day." Kiosks--larger, enclosed, more permanent units in
which the operator sits or stands--can pull in $20,000 to $60,000
per week, Stockberger says.

You don't need special training to run a cart business. What
you do need is an outgoing personality, stamina and business
sense. "The business is stressful," says Stockberger.
"Most malls are open from 9 or 10 a.m. until 9 or 10 p.m.
every day, and you're expected to be there. That's a lot of
standing. Even if you set up shop on the street or in a park, to
build a customer base, you have to show up regularly."

Employees may seem a logical solution to the intense labor
requirements, but that's not as easy as it sounds. "I have
employees, but I have to watch them like a hawk," says Rizza.
"If they're talking to friends instead of pushing the
product, I lose business."

Julie Bawden Davis is a writer in Orange, California.

Decisions, Decisions

Options for starting a cart or kiosk business include opening a
permanent location in a mall and leasing a cart; buying a cart to
use for outdoor events or on street corners; or renting a cart
short-term.

"The least expensive option is to rent [a cart] for a short
time and see how it goes," advises Stockberger, who says
you'll spend at least $600 per week for rent.

Whether you lease or buy a cart depends on your product and
location. In malls, you generally lease a cart from mall
management. The cost of leasing depends on the season and mall
traffic volume but is usually at least $800 per month for space and
a cart, and can get very high in a good location. Some malls charge
a percentage of your sales in addition to monthly rent. Rizza pays
more than $2,000 per month for rent on each of his five carts.

You can buy a new cart for $3,000 to $5,000, says Denise Clark,
who started a hot dog cart business in 1988 in Los Angeles for
$2,500 and made more than $3,000 her first two days in business at
the Rose Bowl. Today, Clark has six carts grossing a total of
$200,000 to $300,000 per year.

Additional start-up costs depend on your merchandise. Items such
as jewelry and crystal require a greater investment than, say, hot
dogs, as Suzette Lindsey, 35, discovered two years ago, when she
started a second cart business in the Kennesaw, Georgia, Town
Center Mall.

Lindsey and her mother, Betty Lou, 57, had been selling crafts
at a cart for 10 years. "Our start-up costs were low--probably
between $15,000 and $20,000--because we made all our
merchandise," Lindsey says.

Then the two decided to switch to pre-made items. Their new
company, Top Dogs & Cool Critters, carries pet-related
figurines, key chains, T-shirts and mugs. "[It cost] $75,000
to get a good inventory," Lindsey says. Since start-up two
years ago, sales have increased 25 percent annually.

Pick Your Product

What to carry depends on what you like and what you think will
sell. "I gave 100 people a list of products and asked which
they would buy," Rizza says. "Most people said
sunglasses. I determined sunglasses appeal to a variety of
ages."

The next step is choosing a cart. Carts come in many sizes and
styles with varying capabilities. There are carts for specific
types of food, some with refrigerators, grills, steamers--even
small ovens to bake on location.

Determine your needs before ordering a cart, says Jeffrey
Morris, president of All A Cart Manufacturing Inc. in Columbus,
Ohio, a cart design and manufacturing company. "List your
products and the equipment required to make or display them,"
he says. "Also draw a simple layout of the cart to give [the
manufacturer] an idea of size requirements."

Think versatility, especially with food. Don't limit
yourself to making one item, in case it doesn't sell well and
you have to switch gears.

"What sells might be completely opposite from what you
thought," says Gerardo Gonzalez, director of food service at
the Statue of Liberty in New York City, which has several carts,
and president of Gonzalez & Associates, a Piscataway, New
Jersey, company that consults on mobile merchandising and
food-service start-ups.

You can get a good deal on used carts, but Clark, who also sells
custom-designed carts, urges caution. "People buy a cart they
think is cute--only to find out they've purchased someone
else's headache," she says. "It ends up costing more
to modify than to buy new."

Set Your Sites

In cart sales, location is everything. First decision: Do you
want a permanent location or should you move from event to
event?

With a permanent mall location, you don't have to worry
about purchasing a cart, moving or battling bad weather (unless
it's an outdoor mall). You can build a clientele and predict
how business will go and how much product you need.

On the downside, rent may rise. If mall sales slump, you'll
suffer. And if your product isn't exclusive, a neighboring
store could start offering the same merchandise.

There are many upsides to owning a mobile cart, says Clark, who
does most of her business at special events. "You don't
have overhead like rent and utilities," she says, "and if
sales are poor, you just move."

Research your location thoroughly. "Visit the area at
different times over a two-week period to analyze traffic flow and
get an idea of potential clientele," says Gonzalez. "Do
you see a lot of children and teenagers or middle-aged people and
seniors? Each age group has different requirements."

Don Roeder's Carte du Jour Catering has a regular location
in front of a law school in downtown Columbus, Ohio, but is
especially successful in front of downtown bars on weekends.
"I sell a lot of hot dogs and sausages to men coming out of
bars," says Roeder, 32, who has doubled sales since starting
his cart business in 1997 for $20,000.

Once you've chosen a location, contact the appropriate
authorities about setting up shop. For a mall, that's mall
management in charge of carts and kiosks. For a public place,
contact the city or county to see if a cart is allowed and what
permits are required. In a professional office building, contact
building management.

You'll need a business license, and if you haul your cart
like a trailer, you must get a license from the Department of Motor
Vehicles. If you serve food, you'll need a permit from the
Department of Health, which requires a specific amount of training
in food preparation and handling. Malls often already have the
carts permitted and insured.

Once you've opened your cart or kiosk, attract customers
with eye-catching displays. You and your employees should be
well-dressed and enthusiastic and make eye contact with
passersby.

Most important, keep the faith. "Think positive," says
Rizza. "Even if business is slow, look at the big picture and
know that, in the long run, you're going to make it."

Hot Stuff

Almost any high-quality product can sell at a cart or kiosk if
it's packaged well and offered with a smile. Some perennially
popular offerings: